How does gazundering work?

[trilbydoll]

DH and I were just saying if we were gazundered we hope we would have the nerve to tell them to do one. Then we thought:

Say we accept an offer of £250k. Knowing how much is left on mortgage etc we toddle off and buy new house for £300k.

If seller tries to knock £5k off at the last minute, surely we need either £5k in the bank or £5k more mortgage? Or are we meant to pass this gazundering up the chain and try and knock £5k off our house? Surely it isn't possible to resolve in a day anyway?

We are not planning to sell, but it's going round and round my head now!

Sometimes a compromise amount is negotiated between seller and buyer. Occasionally all the links in the chain take a hit each (that's unusual and everyone in the chain has to be exceptionally laid back - or desperate). Sometmes the seller takes the full hit. Sometimes the sale breaks down because of it. Is that all the scenarios?

I know someone who was told to borrow the money from family.
They didn't!

Gazundering is a good reason not to be pushed into exchanging and completing on the same day.

Bottom of our chain tried to gazunder our purchasers by £15 000 (on exchange day, of course) when we were selling last year. They asked if we would take £7500 off us and if the top (where we were buying) would also come down by that amount. Didn't even ask the top (he was an a*se anyway) and why would they when they were realising their capital and moving abroad. Upshot: they had to go back on market and find new purchasers.

only in mumsnetworld do people exchange and complete on the same day. Between the two you need to confirm removals, arrange redirects, finalise schools and a million other things that aren't definite until exchange.

never heard of anyone in real life doing it.

last minute nonsense as you describe happens just before exchange. And what goes around usually comes around.

Our buyer's buyer (an aid worker based overseas, fwiw) gazundered our buyer by £10k just prior to exchange at the end of last year. Our buyer very honourably chose to not pass this along the chain to us but instead went out and got their mortgage increased by £10k.

I'm also a firm believer in karma!

Thanks all, that makes sense. Hopefully the universe rewards gazunderers with a gazumper further down the line!

Surely you would be adding 5k on, not knocking 5k off!

Ignore me Ive taken my stupid pills today .